Mining includes quarrying for concessional CST purposes; high speed diesel used in quarrying remains eligible after GST changes.

Quarrying of granite metal was treated as "mining" for the purposes of the concessional provision in Section 8(3)(b) of the Central Sales Tax Act because, in fiscal interpretation, extraction from the earth includes quarrying and the regulatory distinction between mines and quarries is not controlling. High speed diesel used in quarrying also remained eligible for concessional CST treatment after the GST regime, as the amended definition of goods did not narrow the class of goods used in specified activities such as mining, and retained petroleum products were not excluded. The authorities' refusal to restore the CST registration entry was therefore unsustainable, and the assessee was entitled to the concessional rate for inter-State purchases used in quarrying.

---

---

Issues: (i) Whether quarrying of granite metal amounts to "mining" for the purposes of Section 8(3)(b) of the Central Sales Tax Act, 1956. (ii) Whether high speed diesel used in the quarrying activity remained eligible for concessional treatment under the Central Sales Tax Act after the GST regime and the amended definition of goods.

Issue (i): Whether quarrying of granite metal amounts to "mining" for the purposes of Section 8(3)(b) of the Central Sales Tax Act, 1956.

Analysis: The term "mining" was construed in its fiscal setting and in common parlance, not by importing a narrow distinction drawn for regulatory or safety purposes under mining enactments. The statutory and judicial materials showed that open cast working and underground excavation are both forms of extraction from the earth, and the regulatory distinction between mines and quarries does not control the meaning of "mining" in the sales tax context. The purpose of the concessional provision is to reduce tax burden on inter-State purchases used in specified activities, and that purpose would be frustrated by excluding quarrying merely because the activity is carried on by open cast working.

Conclusion: Quarrying of granite metal falls within "mining" for the purposes of Section 8(3)(b) of the Central Sales Tax Act, 1956.

Issue (ii): Whether high speed diesel used in the quarrying activity remained eligible for concessional treatment under the Central Sales Tax Act after the GST regime and the amended definition of goods.

Analysis: The amended definition of goods under the Central Sales Tax Act was held to be relevant for resale cases, but not to cut down the wider class of goods used in the specified activities of manufacture, processing, mining, telecommunications, and power generation. High speed diesel remained a retained petroleum product under the sales tax regime, and the continued operation of the relevant GST provisions did not take away the concession for inter-State purchases used in quarrying. The absence of a separate KGST registration did not defeat the claim, because the assessee held CST registration and the claim concerned inter-State purchases for use in the quarrying activity.

Conclusion: The assessee was entitled to the concessional rate under the Central Sales Tax Act for high speed diesel used in its quarrying activity, and the authorities' refusal to restore the CST registration entry was unsustainable.

Final Conclusion: The impugned orders were set aside and the registration was directed to be restored with the relevant HSD entry, thereby granting the assessee the concessional CST benefit for inter-State purchases used in quarrying.

Ratio Decidendi: For interpreting a concessional fiscal provision, "mining" includes quarrying when both involve extraction from the earth, and the post-GST restriction on the definition of goods does not exclude retained petroleum products used in such specified activities from concessional CST treatment.

---